Investar Holding Corporation (NYSE: ISTR), the parent company of Investar Bank, National Association, has made an exciting announcement for investors. The company's Board of Directors has authorized the repurchase of an additional 350,000 shares of the Company's common stock under a stock repurchase program, in addition to the 248,439 shares remaining under the current repurchase program. This move reflects the company's confidence in its long-term prospects and commitment to delivering value to its shareholders.

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Investar Holding Corporation's Strong Stock Buyback Activity

Recent stock buyback activity by Investar Holding Corporation has been noteworthy. During the first two quarters of 2023, the company repurchased 138,275 shares at an average price of $14.39. Since the inception of the stock repurchase program in 2015, Investar Holding Corporation has invested $46.7 million to repurchase 2,451,561 shares at an average price of $19.05. This steady repurchase activity demonstrates the company's dedication to enhancing shareholder value and its belief in the company's true worth.

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Management's Confidence in the Company's Intrinsic Value

The company's President and CEO, John D'Angelo, expressed strong confidence in Investar Holding Corporation's intrinsic value. He stated, "The Company and Board of Directors believe that Investar's current share price does not reflect the Company's long-term intrinsic value, and the extension of this repurchase program underscores our confidence in the long-term outlook for our business." This sentiment further emphasizes the company's commitment to rewarding shareholders and its belief in the future growth potential of the organization.

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Undervalued Stock Price and Attractive Investment Opportunity

Investar Holding Corporation firmly believes that its current stock price is undervalued, presenting an attractive investment opportunity for the Company. With the extension of the stock repurchase program, the company aims to capitalize on the discrepancy between its stock price and its perceived true value. In addition to the buyback program, the company continues to offer an ongoing quarterly shareholder dividend, which has been increasing at an impressive rate of 34% per annum since its initial public offering, reaching $0.10 per share.

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Flexible Repurchase Approach

Investar Holding Corporation's stock repurchase program provides the company with flexibility in executing the buybacks. The company plans to repurchase its shares either through open market transactions or privately negotiated transactions, as permitted by federal securities laws. This approach allows the company to adapt its repurchase strategy to market conditions and other regulatory requirements, optimizing the benefits for its shareholders.

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No Expiration Date and Possible Modifications

The stock repurchase program has no set expiration date, granting the company the ability to continue repurchasing shares until fully utilized. Additionally, the program remains subject to modification, suspension, or termination at the company's discretion. The decision on the timing and amount of any future share repurchases will depend on various factors, including the trading price of the company's common stock, regulatory restrictions, capital allocation priorities, and overall market and economic conditions.